Global funds underweight on Chinese stocks, likely to increase holdings as economy improves

From BNN Bloomberg: 2024-05-27 04:07:40

Global funds have kept a small underweight stance on Chinese shares, but are likely to increase holdings as the economy improves. 72% of EM investors hold an underweight position in Hong Kong and mainland Chinese shares, down from 78% at year-end. The CSI 300 Index has gained over 5% since December with fourth consecutive month of foreign inflows. Analysts are cautiously optimistic about gains, with earnings growth projected at 8% this year. However, an anticipated property market rescue package failed to lift sentiment, leading to caution among analysts. Funds have cautiously increased their holdings of mainland Chinese equities, but still maintain an underweight position compared to the benchmark.



Read more at BNN Bloomberg: Funds’ Underweight Stance on China Stocks Leaves Room for Rally